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Which of the following statements about the relationship between bond prices and interest rates are true? There is a direct positive relationship between the prices

Which of the following statements about the relationship between bond prices and interest rates are true?

  1. There is a direct positive relationship between the prices of bonds and interest rates

  2. For two bonds with the same coupon rate, the bond with the shorter time to maturity will have a price that is more sensitive to changes in interest rates

Select one:

I

II

I and II

None of the statements are correct

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